(All amounts are stated in thousands of Canadian dollars, except per share amounts.)
BRAMPTON, Ontario, March 19, 2019 (GLOBE NEWSWIRE) -- Brampton Brick Limited (TSX:BBL.A) today reported a net income of $13,444, or $1.23 per share, for the year ended December 31, 2018, compared to net income of $5,944, or $0.54 per share, for the corresponding prior year. The aggregate weighted average number of Class A Subordinate Voting shares and Class B Multiple Voting shares outstanding were 10,968,227 and 10,969,180 in 2018 and 2017, respectively.
Impacting the year-over-year comparative results were certain non-recurring factors in 2017 and 2018. When excluded, net income for the year ended December 31, 2018 increased to $12,682, or $1.16 per Class A Subordinate Voting share and Class B Multiple Voting share outstanding in 2018 compared to $10,354, or $0.94 per Class A Subordinate Voting share and Class B Multiple Voting share outstanding for the year ended December 31, 2017.
These items were:
- an asset impairment charge of $6,285 on the Farmersburg, Indiana clay brick plant was recorded in 2017;
- an impairment reversal of $2,143 and a provision for income taxes of $268 on the loan receivable from Universal Resource Recovery Inc. (“Universal”) was recognized in 2017; and
- a net gain of $762 was recognized in April 2018 on the acquisition of the remaining 50% interest in the Universal joint venture.
DISCUSSION OF OPERATIONS
Year ended December 31, 2018
Revenues for the year ended December 31, 2018 increased to $159,885 from $156,244 for the corresponding period in 2017. Higher shipments in the first half of 2018 were supported by mild weather conditions, the carry-forward of the backlog in residential construction from 2017 and an increase in multi-family housing construction in Ontario, Canada. In addition, 2018 first-quarter landscape revenues were higher under the 2017-2018 dealer winter booking program due to a deferral of the 2017 fourth-quarter shipments to 2018 because of production capacity constraints in 2017. However, during the second half of 2018, the momentum in residential construction eased off from the high levels experienced in the prior year, due, in part, to fiscal measures introduced in Ontario to moderate the recent rapid appreciation in house prices in the province. This decrease was partially offset by an increase in landscape product shipments under the Company’s 2018-2019 dealer winter booking program during the fourth quarter of 2018.
Cost of sales for the year ended December 31, 2018 increased to $120,289 from $118,307 for the corresponding period in 2017 due to higher shipments and higher freight costs for product transfers to facilitate customer deliveries. This increase was offset, in part, by lower natural gas costs, efficiencies in electric power consumption and a reduction in certain plant-related expenditures from 2017 levels.
Selling expenses for the year ended December 31, 2018 increased to $13,390 from $12,625 in 2017. This increase was due to marketing costs for product promotional displays in the Company’s expanding Eastern Canadian markets, as well as marketing costs to improve the customer experience on the Company’s social media platforms, and higher cloud-based application costs for improved customer online interactivity.
General and administrative expenses for the year ended December 31, 2018 decreased to $7,964 from $9,003 for the prior year. This decrease was mainly due to the 2017 cash settlement of certain employee stock options which amounted to an expense of $771 compared to a credit of $13 to share-based compensation cost recognized in 2018. Upon settlement of these employee stock options, the increase (decrease) in the settlement-date fair market value (“FMV”) from the grant-date FMV is recognized as an expense (income) in share-based compensation cost. In addition, compensation cost recognized on share appreciation rights amounted to $112 (2017 – $452), for the year ended December 31, 2018. Compensation costs on share appreciation rights are measured at fair value at each reporting period and are impacted by estimated changes in the Company’s exchange-traded share price.
On April 2, 2018, the acquisition of the remaining 50% interest in Universal was accounted for as an effective sale of the existing 50% interest in the joint venture and the acquisition of a 100% interest in Universal at fair value on the acquisition date. Based on the fair valuation of the underlying property in Universal, which was estimated to be $13,000, the Company recognized a net gain of $762. This gain effectively represented the Company’s partial recovery of the previously recorded impairment charges on its investment in the joint venture.
As at December 31, 2017, the estimated fair value of the secured, non-interest bearing, non-current loan receivable from Universal was estimated at $6,393. This amount exceeded its carrying value of $4,250. Accordingly, an impairment reversal of $2,143 and a provision for income taxes of $268 was recognized as at December 31, 2017 to write up the loan receivable to its fair value.
For the year 2018, the asset impairment evaluation on the property, plant and equipment of the Farmersburg, Indiana clay brick plant, cash generating unit (“CGU”) did not result in any impairment charge. An impairment charge of $6,285 was recorded for the prior year. The asset impairment tests resulted from an assessment of the Company’s U.S. residential and commercial markets, which indicated continuing uncertain economic conditions in 2018. Management’s assessment of the external and internal indicators of impairment, as per IAS 36, Impairment of Assets, (“IAS 36”) determined that there was no indication that the Brampton clay brick plant, the Canadian concrete plants and the Michigan concrete plant may be impaired.
Other income of $294 for the year ended December 31, 2018 compared to an expense of $120 for the prior year was primarily due to the translation of foreign currency transactions as a result of currency exchange fluctuations between the Canadian and U.S. dollar during the year.
Operating income increased to $19,347 for the year ended December 31, 2018, from operating income of $12,004 in 2017. Excluding the non-recurring transactions described above, operating income for the year ended December 31, 2018 increased to $18,585 from $16,146 for the prior year.
Finance expense for the year ended December 31, 2018 was $1,114 compared to a finance expense of $666 in 2017. Excluding the unrealized loss on the interest rate swap of $31 (2017 – unrealized gain of $596), finance expense for the current year decreased to $1,083 compared to $1,262 for the corresponding prior year. The decrease in finance expense was due to a decrease in debt balances outstanding as a result of scheduled repayments totaling $1,950, in each of 2018 and 2017.
The provision for income taxes amounted to $ 4,789 for the year ended December 31, 2018, compared to a provision of $5,394 for the 2017 fiscal year. No deferred tax assets were recorded with respect to the potential deferred tax benefit pertaining to non-capital losses carried forward by the Company’s U.S. operations.
Three months ended December 31, 2018
For the fourth quarter ended December 31, 2018, the Company recorded net income of $991, or $0.09 per Class A Subordinate Voting share and Class B Multiple Voting share, compared to a net loss of $3,066, or $0.28 per Class A Subordinate Voting share and Class B Multiple Voting share, for the fourth quarter of 2017. The aggregate weighted average number of Class A Subordinate Voting shares and Class B Multiple Voting shares outstanding was 10,960,130 and 10,973,754 for the fourth quarter of 2018 and 2017, respectively.
Excluding the impact of the asset impairment charge of $6,285 and the impairment reversal on the Universal loan receivable of $1,875, net of taxes, as discussed above, the Company’s net income for the fourth quarter of 2017 was $1,344, or $0.12 per Class A Subordinate Voting share and Class B Multiple Voting share.
For the fourth quarter of 2018, revenues were $34,244 compared to $36,567 for the same period in 2017. The decrease in shipments in the Masonry Products business segment was partially offset by an increase in the Landscape Products business segment compared to the corresponding prior period. Costs of sales and freight costs also decreased primarily due to lower shipments. Although lower production volumes increased per unit costs, lower natural gas costs recorded in the fourth quarter of 2018, partially offset these increases.
As a result, operating income for the fourth quarter of 2018 was $2,136, compared to an operating loss of $1,920 for the corresponding quarter in 2017. Excluding the non-recurring transactions, noted above, the operating income for the fourth quarter of 2017 was $2,222.
For the fourth quarter of 2018, finance expense amounted to $501 compared to $159 for the corresponding period of 2017. Excluding the unrealized loss on the interest rate swap of $283 (2017 – unrealized gain of $123), finance expense for the fourth quarter of 2018 decreased to $218 compared to $282 for the corresponding quarter of 2017.
The following paragraphs explain each operating business segment in more detail.
MASONRY PRODUCTS
For the year ended December 31, 2018, revenues increased to $111,570 from $110,433 in 2017. Higher shipments in the first half of 2018 were supported by higher multi-family housing starts, a reduction in the backlog of residential construction carried forward from 2017 and higher demand for new products. However, in the second half of 2018, the pace of home construction in Ontario pared back following the introduction of fiscal measures to curb the rise in housing demand.
Cost of sales decreased to $82,895 from $85,799 in 2017. The cost of sales from higher shipments was offset by the favourable impact of lower required repair and maintenance costs in 2018, lower natural gas costs and improved efficiencies in electric power consumption, largely attributed to the Brampton clay brick facility. In addition, higher production volumes and cost effective improvements in the product mix at the Farmersburg, Indiana clay brick plant positively contributed to lower per unit production costs. In the Company’s masonry concrete plant network higher production volumes had a favourable impact on cost of sales. However, this benefit was offset, in part, by higher freight costs for product transfers to facilitate customer deliveries.
No asset impairment charge was recorded during 2018 (2017 - $6,285).
Operating income from the Masonry Products business segment for the year ended December 31, 2018 increased to $14,275 compared to an operating income of $3,502 in 2017. Excluding the impairment loss of $6,285 on the Farmersburg, Indiana clay brick plant in 2017, the operating income for the prior year was $9,787.
For the fourth quarter of 2018, revenues were $22,326 compared to $26,069 for the corresponding quarter in 2017. Fourth-quarter shipments of 2018 were affected by the moderated pace of residential construction following the introduction of mandated fiscal measures adopted in the Canadian mortgage market as well as the Non-Resident Speculation Tax imposed in the Province of Ontario to curtail overheated housing market conditions in Ontario.
Cost of sales for the fourth quarter of 2018 decreased to $18,448 from $21,009 for the corresponding prior quarter of 2017. The decrease in cost of sales from lower shipments was partially offset by higher per unit manufacturing costs on lower production volumes.
The operating income for the fourth quarter of 2018 was $429 compared to operating loss of $4,995 for the corresponding quarter in 2017. Excluding the impact of the asset impairment charge of $6,285, the operating income for the fourth quarter of 2017 was $1,290.
LANDSCAPE PRODUCTS
Revenues of the Landscape Products business segment for the year ended December 31, 2018 increased to $48,212 from $45,811 in 2017 due to a significant increase in shipments. This increase was supported by strong first-half shipments under the 2017-2018 dealer winter booking program that were deferred from the fourth quarter of 2017 due to production capacity constraints in the Company’s landscape product facilities in 2017. The winter booking program is a landscape sales program designed to help the Company’s dealer network pre-order landscape inventory in the fourth quarter of the year to ensure that dealer inventory levels are optimized prior to the commencement of the seasonal sales increase in the spring and summer months.
Unfavourable weather conditions in the spring and the subdued pace of economic activity impacted landscape shipments in the second-half of 2018. These decreases were offset by higher revenues under the 2018-2019 dealer winter booking program during the fourth quarter of 2018.
Cost of sales for the year ended December 31, 2018 increased to $36,841 compared to $32,508 in 2017. The increase was due to higher shipments but was favourably impacted by lower per unit manufacturing costs on comparatively higher production volumes. Higher freight costs on product transfers to meet customer demand and higher selling expenses were incurred as described under the discussion of operations for the year ended December 31, 2018.
For the year ended December 31, 2018, the operating income of the Landscape Products business segment decreased to $4,734 from $6,359 for the prior year.
The operating income of the Landscape Products business segment was $1,702 for the fourth quarter of 2018 on revenues of $11,883 compared to operating income of $932 on revenues of $10,498 for the fourth quarter of 2017.
CASH FLOWS
For the year ended December 31, 2018, cash provided from operating activities decreased to $18,922 from $21,960 in 2017. The decrease in cash provided from operating activities was primarily due to higher disbursements of trade payables. This decrease was offset by an improvement in operating income, production plant efficiencies, higher collections of trade and other receivables and lower income tax payments in 2018. Final income tax remittances for 2016, as well as 2017 income tax instalment payments were paid in 2017.
Cash utilized for purchases of property, plant and equipment totaled $5,254 in 2018, compared to $7,333 in 2017. This amount includes additions in 2018 totaling $6,290 (2017 - $6,608) and net amounts paid relating to capital expenditures in the prior year. Non-cash capital expenditure relating to estimated future quarry rehabilitation costs amounted to $186 (2017 - $116). Additions included $4,133 (2017 - $5,149) for production equipment and $1,646 (2017 – 1,035) for mobile equipment, of which $707 was financed by finance leases in 2018 (2017 - $323).
The purchase of the remaining shares in Universal Resource Recovery Inc. (“Universal”) totaled $6,500. This transaction closed on April 2, 2018, and represented the acquisition of the remaining 50% interest in the company.
Scheduled and other principal repayments were made on term loans during 2018 in accordance with the terms of the Company’s credit agreement and amounted to $1,959 (2017 - $1,960).
FINANCIAL CONDITION
The Company’s Masonry Products and Landscape Products business segments are seasonal in nature. The Landscape Products business is affected by seasonality to a greater degree than the Masonry Products business. As a result of this seasonality, operating results are impacted accordingly and cash requirements are generally expected to increase through the first half of the year and decline through the second half of the year.
Cash and cash equivalents totaled $27,043 and $22,010 at December 31, 2018 and December 31, 2017, respectively. As a result, bank operating advances were nil at the end of each of 2018 and 2017.
Trade payables totaled $17,429 at December 31, 2018 compared to $20,485 at December 31, 2017.
The ratio of total liabilities to shareholders’ equity was 0.46:1 at December 31, 2018 compared to 0.54:1 at December 31, 2017. The decrease in this ratio from December 2017 to December 2018 was primarily due to higher retained earnings resulting from the improvement in operating results in 2018, a decrease in trade payables, lower income taxes payable, lower term debt outstanding, and an increase in the foreign currency translation gain included in ‘Accumulated other comprehensive income’, due to the relative strengthening of the U.S. dollar as at December 31, 2018.
As at December 31, 2018, the Company’s current ratio is 3.33:1, representing working capital of $57,547, compared to 2.74:1 and $48,365, respectively, as at December 31, 2017. The increase in working capital was primarily due to an increase in cash and cash equivalents, higher inventories and a decrease in trade payables and income taxes payable. This increase was partially offset by a decrease in trade and other receivables.
On the purchase of the remaining 50% interest in Universal on April 2, 2018, the secured, non-interest bearing, loan payable by Universal to its former 50% joint venture owner totaling $5,691, became payable to the Company. As a result, the secured, non-interest bearing, non-current loan payable by Universal totaled $12,084 as at December 31, 2018 (December 31, 2017 - $6,393). In accordance with IAS 10, Consolidated Financial Statements, inter-company assets and liabilities held by the Company and its wholly-owned subsidiaries are eliminated upon consolidation and therefore are not presented in the Consolidated Financial Statements. As at December 31, 2017, the Company’s 50% investment in Universal was accounted for using the equity method of accounting. Accordingly, the loan receivable outstanding balance was presented in the Consolidated Balance Sheet as at that date.
Effective April 2, 2018, rental revenues, related expenses, as well as individual assets and liabilities of Universal are included in the Consolidated Financial Statements and the investment in joint venture and related income (loss) from investment in joint venture no longer exist.
On February 4, 2019, the Company acquired a concrete block plant located in Southwestern Ontario for a purchase consideration of $7,500. The concrete block production facility will increase the masonry concrete production capacity of the Company’s plant network and provide greater proximity to the Southwestern Ontario market. The purchase consideration was settled by a cash payment of $2,500 on February 4, 2019, and a vendor take-back loan in the form of two non-interest bearing promissory notes totaling $5,000, payable in equal instalments over five years.
The Company’s bank credit agreement provides for operating borrowings up to $22,000 based on margin formulae for trade receivables, certain other qualified receivables and inventories, less priority claims. It is a demand facility secured by a general security agreement over all assets. The agreement contains certain financial covenants. As at December 31, 2018 and 2017, the Company was in compliance with all the financial covenants under its term financing agreement and operating credit facility and anticipates that it will maintain compliance throughout 2019. The term financing agreement was amended on October 2, 2018 to extend the maturity date of the committed term A and committed term B credit facilities to January 29, 2021 from December 29, 2019, under prevailing terms and conditions.
The Company expects that future cash flows from operations, cash and cash equivalents on hand and the unutilized balance of its operating credit facility will be sufficient to satisfy its financial obligations as they become due.
FORWARD-LOOKING STATEMENTS
Certain statements contained herein constitute “forward-looking statements”. All statements that are not historical facts are forward-looking statements, including, among others, statements regarding the expected repayment of the loan receivable from Universal and the expected self-sufficiency on a cash basis of Universal, forecasts of sufficient cash flows from operations and other sources of financing, anticipated compliance with financial covenants under debt agreements, anticipated sales of masonry and landscape products, anticipated results of strategic acquisitions and other statements regarding future plans, objectives, production levels, costs, productivity, results, business outlook and financial performance. There can be no assurance that such forward-looking statements will prove to be accurate.
Such forward-looking statements are based on information currently available to management, and are based on assumptions and analyses made by management in light of its experience and its perception of historical trends, current conditions and expected future developments, including, among others, assumptions regarding pricing, weather and seasonal expectations, production efficiency, and there being no significant disruptions affecting operations or other material adverse changes.
Such forward-looking statements also involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others: changes in economic conditions, including the demand for the Company's primary products and the level of new home, commercial and other construction; large fluctuations in production levels; fluctuations in energy prices and other production costs; changes in transportation costs; foreign currency exchange and interest rate fluctuations; legislative and regulatory developments; as well as those assumptions, risks, uncertainties and other factors identified and discussed above under “Risks and Uncertainties” in the 2018 annual MD&A included in the Company’s 2018 Annual Report and those identified and reported in the Company's other public filings (including the Annual Information Form for the year ended December 31, 2018), which may be accessed at www.sedar.com.
The forward-looking information contained herein is made as of the date hereof. Other than as specifically required by law, the Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on forward-looking statements.
Brampton Brick Limited is Canada’s second largest manufacturer of clay brick, serving markets in Ontario, Quebec and the Northeast and Midwestern United States from its brick manufacturing plants located in Brampton, Ontario and Farmersburg, Indiana. To complement the clay brick product line, the Company also manufactures a range of concrete masonry products, including concrete brick and block as well as stone veneer products. Concrete interlocking paving stones, retaining walls, garden walls and enviro products are manufactured and distributed from facilities in Markham, Hillsdale, Brockville, Cambridge and Brampton, Ontario, in Boisbriand, Quebec and in Wixom, Michigan and sold to markets in Ontario, Quebec, Michigan, New York, Pennsylvania, Ohio, Kentucky, Illinois and Indiana under the Oaks™ and Boehmers™ trade names. The Company’s products are used for residential construction and for industrial, commercial, and institutional building projects.
Selected Financial Information
(in thousands of Canadian dollars)
| December 31 | December 31 | ||||||
| CONSOLIDATED BALANCE SHEETS | 2018 | 2017 | |||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 27,043 | $ | 22,010 | |||
| Trade and other receivables | 18,137 | 21,287 | |||||
| Inventories | 35,583 | 31,666 | |||||
| Other assets | 1,210 | 1,065 | |||||
| Income tax recoverable | 119 | - | |||||
| Loan receivable | 64 | 94 | |||||
| Current derivative financial instrument | 77 | - | |||||
| 82,233 | 76,122 | ||||||
| Non-current assets | |||||||
| Loans receivable | - | 6,457 | |||||
| Property, plant and equipment | 169,075 | 157,365 | |||||
| Non-current derivative financial instrument | 129 | 258 | |||||
| Other assets | 79 | 181 | |||||
| 169,283 | 164,261 | ||||||
| Total assets | $ | 251,516 | $ | 240,383 | |||
| LIABILITIES | |||||||
| Current liabilities | |||||||
| Trade payables | $ | 17,429 | $ | 20,485 | |||
| Income tax payable | - | 746 | |||||
| Current portion of debt | 2,418 | 2,129 | |||||
| Current derivative financial instrument | - | 21 | |||||
| Current provision on share appreciation rights | 402 | 308 | |||||
| Decommissioning provisions | - | 31 | |||||
| Other liabilities | 4,437 | 4,037 | |||||
| 24,686 | 27,757 | ||||||
| Non-current liabilities | |||||||
| Non-current portion of debt | 32,241 | 34,037 | |||||
| Non-current provision on share appreciation rights | 161 | 143 | |||||
| Decommissioning provisions | 6,974 | 6,571 | |||||
| Deferred tax liabilities | 15,334 | 15,885 | |||||
| 54,710 | 56,636 | ||||||
| Total liabilities | 79,396 | 84,393 | |||||
| EQUITY | |||||||
| Share capital | $ | 33,909 | $ | 33,915 | |||
| Contributed surplus | 3,218 | 3,146 | |||||
| Accumulated other comprehensive income | 10,947 | 8,240 | |||||
| Retained earnings | 124,046 | 110,689 | |||||
| 172,120 | 155,990 | ||||||
| Total liabilities and equity | $ | 251,516 | $ | 240,383 | |||
Selected Financial Information
(in thousands of Canadian dollars, except per share amounts)
| Year ended | |||||||||
| December 31 | |||||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | 2018 | 2017 | |||||||
| Revenues | $ | 159,885 | $ | 156,244 | |||||
| Cost of sales | 120,289 | 118,307 | |||||||
| Selling expenses | 13,390 | 12,625 | |||||||
| General and administrative expenses | 7,964 | 9,003 | |||||||
| (Gain) loss on disposal of property, plant and equipment | (49 | ) | 43 | ||||||
| Share of income from joint venture interest | (762 | ) | - | ||||||
| Impairment reversal on loan receivable | - | (2,143 | ) | ||||||
| Asset impairment | - | 6,285 | |||||||
| Other (income) expense | (294 | ) | 120 | ||||||
| 140,538 | 144,240 | ||||||||
| Operating income | 19,347 | 12,004 | |||||||
| Finance expense | (1,114 | ) | (666 | ) | |||||
| Income before income taxes | 18,233 | 11,338 | |||||||
| (Provision for) recovery of income taxes | |||||||||
| Current | (5,342 | ) | (5,395 | ) | |||||
| Deferred | 553 | 1 | |||||||
| (4,789 | ) | (5,394 | ) | ||||||
| Net income for the year | $ | 13,444 | $ | 5,944 | |||||
| Other comprehensive income | |||||||||
| Items that will be reclassified subsequently to profit or loss when specific conditions are met: | |||||||||
| Foreign currency translation gain (loss) | $ | 2,707 | $ | (2,589 | ) | ||||
| Total comprehensive income for the year | $ | 16,151 | $ | 3,355 | |||||
| Net income per Class A Subordinate Voting share and Class B Multiple Voting share | $ | 1.23 | $ | 0.54 | |||||
| Weighted average Class A Subordinate Voting shares and Class B Multiple Voting shares outstanding (000's) | 10,968 | 10,969 | |||||||
Selected Financial Information
(in thousands of Canadian dollars)
| Year ended | |||||||||
| December 31 | |||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | 2018 | 2017 | |||||||
| Cash provided by (used for) | |||||||||
| Operating activities | |||||||||
| Net income for the year | $ | 13,444 | $ | 5,944 | |||||
| Items not affecting cash and cash equivalents | |||||||||
| Depreciation | 9,795 | 10,316 | |||||||
| Current tax provision | 5,342 | 5,395 | |||||||
| Deferred tax recovery | (553 | ) | (1 | ) | |||||
| (Gain) loss on disposal of property, plant and equipment | (49 | ) | 43 | ||||||
| Share of income from joint venture investment | (762 | ) | - | ||||||
| Unrealized foreign currency exchange (gain) loss | (521 | ) | 460 | ||||||
| Impairment reversal on loan receivable | - | (2,143 | ) | ||||||
| Asset impairment | - | 6,285 | |||||||
| Net interest expense | 1,083 | 1,262 | |||||||
| Derivative financial instrument loss (gain) | 31 | (596 | ) | ||||||
| Other | 203 | 688 | |||||||
| 28,013 | 27,653 | ||||||||
| Changes in non-cash items | |||||||||
| Trade and other receivables | 3,362 | (369 | ) | ||||||
| Inventories | (2,977 | ) | (3,247 | ) | |||||
| Other assets | - | (513 | ) | ||||||
| Trade payables | (3,390 | ) | 5,797 | ||||||
| Other liabilities | 135 | 126 | |||||||
| (2,870 | ) | 1,794 | |||||||
| Income tax payments | (6,206 | ) | (7,471 | ) | |||||
| Payments for decommissioning of assets | (15 | ) | (16 | ) | |||||
| Cash provided by operating activities | 18,922 | 21,960 | |||||||
| Investing activities | |||||||||
| Purchase of property, plant and equipment | (5,254 | ) | (7,333 | ) | |||||
| Purchase of investment in Universal | (6,500 | ) | - | ||||||
| Cash acquired on purchase of investment in Universal | 769 | - | |||||||
| Proceeds from repayments of loans receivable | 94 | 89 | |||||||
| Proceeds from disposal of property, plant and equipment | 224 | 245 | |||||||
| Cash used for investment activities | (10,667 | ) | (6,999 | ) | |||||
| Financing activities | |||||||||
| Payment of term loans | (1,959 | ) | (1,960 | ) | |||||
| Interest paid | (992 | ) | (1,206 | ) | |||||
| Payments on obligations under finance leases | (267 | ) | (732 | ) | |||||
| Proceeds from exercise of stock options | 46 | 135 | |||||||
| Repurchase of Class A Subordinate Voting shares | (155 | ) | - | ||||||
| Cash used for financing activities | (3,327 | ) | (3,763 | ) | |||||
| Foreign exchange on cash held in foreign currency | 105 | (111 | ) | ||||||
| Increase in cash and cash equivalents | 5,033 | 11,087 | |||||||
| Cash and cash equivalents at the beginning of the year | 22,010 | 10,923 | |||||||
| Cash and cash equivalents at the end of the year | $ | 27,043 | $ | 22,010 | |||||
Selected Financial Information
(in thousands of Canadian dollars)
| CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |||||||||||||||||
| Share Capital | Contributed Surplus | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Equity | |||||||||||||
| Balance - January 1, 2017 | $ | 33,755 | $ | 3,101 | $ | 10,829 | $ | 104,745 | $ | 152,430 | |||||||
| Net income for the year | - | - | - | 5,944 | 5,944 | ||||||||||||
| Other comprehensive loss (net of taxes, $nil) | - | - | (2,589 | ) | - | (2,589 | ) | ||||||||||
| Total comprehensive (loss) income for the year | - | - | (2,589 | ) | 5,944 | 3,355 | |||||||||||
| Cash-settled, share-based compensation | - | (167 | ) | (167 | ) | ||||||||||||
| Stock options exercised | 160 | (25 | ) | 135 | |||||||||||||
| Share-based compensation | - | 237 | 237 | ||||||||||||||
| Balance - December 31, 2017 | $ | 33,915 | $ | 3,146 | $ | 8,240 | $ | 110,689 | $ | 155,990 | |||||||
| Balance - January 1, 2018 | $ | 33,915 | $ | 3,146 | $ | 8,240 | $ | 110,689 | $ | 155,990 | |||||||
| Net income for the year | - | - | - | 13,444 | 13,444 | ||||||||||||
| Other comprehensive income (net of taxes, $nil) | - | - | 2,707 | - | 2,707 | ||||||||||||
| Total comprehensive income for the year | - | - | 2,707 | 13,444 | 16,151 | ||||||||||||
| Cash-settled, share-based compensation | - | (17 | ) | - | - | (17 | ) | ||||||||||
| Stock options exercised | 62 | (16 | ) | - | - | 46 | |||||||||||
| Share-based compensation | - | 105 | - | - | 105 | ||||||||||||
| Repurchase of Class A Subordinate Voting shares | (68 | ) | - | - | (87 | ) | (155 | ) | |||||||||
| Balance - December 31, 2018 | $ | 33,909 | $ | 3,218 | $ | 10,947 | $ | 124,046 | $ | 172,120 | |||||||
For more information please contact:
Jeffrey G. Kerbel, President and Chief Executive Officer
OR
Trevor M. Sandler, Vice-President, Finance and Chief Financial Officer
Brampton Brick Limited
Tel: 905-840-1011
Fax: 905-840-1535
e-mail: investor.relations@bramptonbrick.com